PERTH (miningweekly.com) - Federal Resources and Energy Minister Martin Ferguson has continued punting Australia’s attractiveness as a resource investment destination, despite the introduction of a proposed carbon tax and mineral resources rent tax (MRRT).

Using the announcement by Brazilian major Vale and ASX-listed Aquila Resources, which approved $875-million in funding for the Eagle Downs coking coal project, in Queensland, Ferguson said that this was proof that Australia remained an attractive investment destination.

“With A$430-billion already in the investment pipeline for resources and energy projects, investors both domestically and from around the world are demonstrating their confidence in Australia.”

Ferguson said that the strength and resilience of Australia’s economy was a major factor in the country’s ability to continue to attract these large-scale investments.

“Projects like this one add to that by driving economic growth for Queensland in particular, and the nation at large.

“Increased production capacity from projects like Eagle Downs going ahead, helps Australia to maintain its market share and position as the world’s largest exporter of coal.”

The Eagle Downs project, which was granted its mining lease earlier this month, would produce some 5.1-million tons of coal a year, of which 4.5-million tons was expected to be hard coking coal from one longwall operation, over an initial ten-year life-of-mine.

The project was expected to be in production by October 2016.

Federal Climate Change Minister Greg Combet said that Vale’s investment decision showed that Australia’s coal sector had a bright future, and gave the lie to the Coalition’s “irresponsible scare campaign” over the carbon tax.

Under the MRRT, the federal government is proposing to impose a 30% tax on profits by the iron-ore and coal industries, while the proposed carbon tax would impose a levy of A$23/t on carbon emissions.

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